Explain Why Purchasing a High-Growth Mutual Fund Can Be a Worse

question 60

Essay

Explain why purchasing a high-growth mutual fund can be a worse investment than taking out a second mortgage on a home and investing in the market index.

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Definitions:

Exports

Goods and services produced in a nation and sold to customers in other nations.

Imports

Goods and services bought by people in one country that are produced in other countries.

Balance

The term can refer to the difference between the sum of all credits and debits in an account, or equilibrium in supply and demand in a market.

Payments

The transfer of money from one party to another in exchange for goods, services, or to fulfill a legal obligation.